How monopoly in the financial loan industry affects you

How A Monopoly in The Financial Loan Industry Can Hurt You

Monopolies happens in many ways — striking a deal with government, using unfair practices to shut down competitors or even through consolidating market shares.

While some monopolies are necessary to lower costs for consumers, most of them are not. Once a company gains majority market share, they can often use that power to fix prices or negotiate for unfair deals with smaller vendors.

Learning from The Grab-Uber Merger

The merger was big news for the private car hire market in Asia, but this is not Uber’s first merger with their competitor. It happened in China too. One year after Uber sold their business to Didi, both drivers and passengers are unhappy.

Passengers now find it more expensive and difficult to hail a cab because incentives for drivers have been cut, which resulted in lesser cabs on the road.

And just a few months after the merger here in Singapore, consumers are feeling the same pinch.

“Now, it’s been more than two weeks and I haven’t received other promotions. It used to be weekly promos without fail,” said Ms Joseph, who has reached the highest member status of Platinum.

Although Grab also said that they have been gradually shifting to the GrabRewards system which allows passengers to earn points to redeem one-off promo code.

But it takes so long to even redeem the cheapest $5 promo, that it no longer makes sense for a lot of riders to take Grab as regularly as before.

This then directly impacted the drivers too. Due to the increase in fleet numbers for Grab and lesser incentives for passengers, drivers found themselves waiting more to pick up their next passenger.

Just within this short time period, both riders and drivers are seeing huge decrease in value from Grab, and we can only hope this doesn’t get any worse.

Why Moneylenders Are Important to Prevent the Same from Happening to the Financial Loan Industry

Before licensed moneylender was set up, people who aren’t eligible to borrow from the banks nor have the luxury of borrowing from friends or relatives often have to rely on loan sharks or unlicensed moneylenders for financial loan.

This caused a lot of problem for the Singapore society since loan sharks are doing all sorts of brazen acts in an effort to collect back the debts including setting homes on fire, locking up flats and using paints all around the debtor’s flat.

However, the entry of licensed moneylenders managed to change some of that. With Singapore law governing and placing restriction on this industry, consumers are getting much better protection, and they do not have to worry about the same brazen acts from loan sharks.

Hence, the complete elimination of the moneylenders means illegal moneylenders will have complete monopoly over this segment of financial loan, which may lead to many more loan sharking activities, causing inconvenience and trouble for Singaporeans.

Are there any other monopolies that you can think of in today’s market?

When Are Personal Loans a Good Option?

When Are Personal Loans A Good Option?

Personal Loans Applicable for Businesses?

With startups on the rise in Singapore, churning different concepts ranging from technology to F&B (hipster cafe joints). Businessmen and investors are now more than willing to try out their ideas, and as an operating business time is never on their side. We know that through our own experience at Empire Global that with the many issues involved and a need to have a good financial cash flow especially when we are in the business of money lending. This is when personal loans come in handy.
This is because even with a good business plan, good directors and advisors in the company, one would still need to churn out the initial financial burden involved in starting up a company. Bills, salaries, running operating expenses are a constant hit for new startups.

What about Personal Loan Singapore? Viable?

As with all loans, a certain portion of risk is involved when one takes up a loan. Singapore as a business hub brings ease to setting up businesses. Financial instituations like banks and moneylenders are competitive in this field of loans. Same like us at Empire Global.
For startup entrepreneurs, a personal loan might be a good option as the initial team and operating expenses are kept small. Hence personal loans provide the flexibility to use the loan amount for any purposes you deemed fit. Whereas a business loan would be pegged to your business abilities and assets. Some look at the age of business to qualify the business for a loan.

Affordability of Personal Loans

In Singapore, personal loans come in different sizes big and small to suit the varying financial needs of individuals and businesses alike. Personal loan offerings are starting to be the more popular choice for borrowers be it borrowing from banks or moneylenders. As an individual can use the money to pay for a variety of items, including their car, electronics, debt consolidation and so forth.
Small Business Operating Expenses

Small Business Operating Expenses

This becomes a popular choice offering for businesses alike as the loan amount can be paid out to a variety of channels. Repayment periods are usually monthly fixed on a agreed upon day of the month. Interests rates are fixed unless a longer repayment period is negotiated upon with the loan officers.

Should I Get a Personal Loan?

Like with all loans, it depends on your pressing needs and circumstances. If you have a urgent need for cash and don’t have any existing assets, but own a credit card then it a personal loan would be a better choice. This is due to the higher rates charge for credit card cash withdrawals.
Need money in a hurry, and want to forgo tedious documentation? Need cash without a specific reason? Then personal loans would be the choice option.

In Summary: Key Advantages of Personal Loans

Flexibility of use: Personal loans are versatile and multipurpose. They can used with  a variety of purposes, be it travel expenses, medical expenses or purchasing equipment for business.
Quick Availability: Getting loans is usually fast. Submit online quote requests to moneylenders like us at Empire Global or submit application forms through banks. It is extremely effective if you are looking for emergency funds.
Minimal Documentation: Typically, personal loans require one of the least documentation unless you have bad credit rating.
Essentially, weigh out the advantages of the the various loan types available before deciding on choosing a personal loan. There could be better loan options available so do your research before signing on the dotted line.
We strongly advise our clients to tell us about their money needs and we will provide the best loan option and suggested repayment periods. This allows our borrowers to achieve the best loan rates and repayment periods.
At Empire Global we offer our customers professional legal financial assistance in a variety of loan formats. If you are looking for a legal loan provider in Singapore, we offer reliable and effective solutions for your needs. We operate as a licensed moneylender company in Singapore.